GST and Real Estate
RATE 5%
RATE APPLIES TO PURCHASES MADE AFTER OCT 30TH, 2007 WHERE OWNERSHIP AND POSSESSION IS TRANSFERRED AFTER JAN 1ST 2008.
GST and New Homes:
Primary residence and rental properties may qualify for partial rebate.
$350,000 or less GST is 3.2% (36% rebate)
$350,000 to $450,000 partial rebate (see below)
$450,000 or more GST is 5% (no rebate)
For new homes purchased for $350,000 to $450,000, the rebate gradually declines to zero as the purchase price increases. The rebate decreases by 1% for every $1,000 increase in purchase price. For example: If you paid $400,000 for a new home, the purchase price is $50,000 over, causing the discount to decline by 50%. Thus the $6,300 rebate is reduced to $3,150. GST payable would be: $400,000 at 5% is $20,000 less $3,150 or $16,850.
PURCHASES MADE PRIOR TO OCT 3OTH, CAN APPLY FOR A TRANSITIONAL REBATE DIRECTLY TO REVENUE CANADA
(To be used as a guide only)